The following is a portion of the condensed income statement for Rowan, Inc., a manufacturer of plastic

Question:

The following is a portion of the condensed income statement for Rowan, Inc., a manufacturer of plastic containers:

Required:
1. Determine Rowan's inventory turnover.
2. What information does this ratioprovide?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

See More Books

Question Posted: Jun 24, 2013 07:25 AM

See More Questions

The following is a portion of a classic data set called the "pilot plot data" in Fitting Equations to Data by Daniel and Wood, published in 1971. The response y is the acid content of material...
The following is a portion of the January 31, 2009 and 2008, balance sheets ofMacy's, Inc.: Macy's debt to equity ratio for the year ended January 31, 2009 was 3.8, calculated as $17,499 $4,646....
A comparative balance sheet and an income statement for Rowan Company are given below: Millen Corporation Balance Sheet June 30 Assets Cash $ 120,000 Accounts receivable 166,000 Inventory 37,200...
If Jody's records show $2,000 in investment by owner, $10,000 in net income, $5,000 in assets and $1,000 in owner's drawings. What is Jody's ending owner's equity on a statement of changes in owner's...
Draw the structure of an example of each of the following types of lipids: (a) A saturated fat (b) A polyunsaturated oil (c) A wax (d) A soap (e) A detergent (f) A phospholipid (g) A prostaglandin...
How is a sales budget prepared, and what information is included? Discuss.
Meddevco (name changed) is a large multinational corporation that operates in the medical devices sector. The firm employs around 33,000 people in five divisions and has operations in 120 countries....
Prior to the start of fiscal 2013, managers of MultiTech hosted a web conference for its shareholders, financial analysts, and members of the financial press. During the conference, the CEO and CFO...
3. Economic Scenario Probability (Ps) Conditional Stock Returns Market Returns (%) (%) A B Recession 0.25 -13 -4 -2 Stagnation 0.40 16 -2 10 High Growth 0.20 32 21 22 Low Growth 0.15 12 18 16 Compute...
A 30-m3 tank contains 14 m3 of liquid n-butane in equilibrium with its vapor at 25(C. Estimate the mass of n-butanc vapor in the tank. The vapor pressure of n-butane at the given temperature is 2.43...
Listed below are several terms and phrases associated with revenue recognition and profitability analysis. Pair each item from List A (by letter) with the item from List B that is most appropriately...
The 2011 income statement of Anderson Medical Supply Company reported net sales of $8 million, cost of goods sold of $4.8 million, and net income of $800,000. The following table shows the company's...
A ski area claims that its lifts can move 47,000 people per hour. If the average lift carries people about 200 m (vertically) higher, estimate the maximum total power needed.
Given an array of 20 elements 10, 21, 0, 41, 24, 9, 29, 0, 90, 85, 77, 56, 62, 17, 0, 33, 23, 44, 50, 52. Complete the program to print the total number of odd numbers in the array and even numbers...
(a) Calculate the negative number of 01012 using 2's complement representation. (b) Calculate the negative number of 01012 using sign magnitude representation. (c) 10002 is written in 2's complement...
(a) What is the range of values that can be represented using a 4-bit unsigned representation? (b) What is the range of values that can be represented using a 4-bit sign magnitude representation? (c)...
(a) Add these two 5-bit unsigned representation binary numbers 010112 and 101102. (b) Add these two 5-bit 2's complement representation binary numbers 100002 and 011112. Write the answer in binary...
Assuming the demand for preventive services is inelastic, would price subsidies (i.e. zero cost-sharing for vaccination) increase the demand for preventive services? Explain why (not).
When one generation reproduces to form the next, the frequencies of alleles in the population can change by chance from generation to generation in a process called random genetic drift. An...
Sue Deliveau opened a software consulting firm that immediately paid $2,000 for a computer. Was this event a transaction for the business?
What are the major differences between macro- and micro-regions?
(a) What is the par or stated value of Coca-Colas and PepsiCos common or capital stock? (b) What percentage of authorized shares was issued by Coca-Cola at December 31, 2007, and by PepsiCo at...
Kellogg Company is the world's leading producer of ready-to-eat cereal products. In recent years the company has taken numerous steps aimed at improving its profitability and earnings per share....
The following note related to stockholders equity was reported in Wiebold, Inc.s annual report. On February 1, the Board of Directors declared a 3-for-2 stock split, distributed on February 22 to...
Find the first derivative of the following equation: a. b. y=e3x y=e(x+1) d. y=125x+16-2x y=ln x y=ln (3x+x1) y=In (x+1)
The Cutting Department of Lasso Company has the following production and cost data for August. Production Costs 1. Started and completed 9,600 units. Beginning work in process $0 2. Started 2,300...
There is sufficient evidence to support the conclusion that a robust relationship exists between drugs and crime. Explain and discuss the studies that support this conclusion. Further explain and...

The following is a portion of the condensed income statement for Rowan, Inc., a manufacturer of plastic

Question:

Net saies Less, Cost of goods sold Inventorv. Januarv 1 Net purchases Inventory, December 31 6,90,000) 1,840,000 Gross profit S 2460000 $630.000 19,00,000 620,000

Step by Step Answer:

Requirement 1 Inventory turnover ratio Cost of goods sold Average inventory 1840000 690000 630000 2 ...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions